Ambu

Interim / Quarterly Report • May 14, 2024

INTERIM REPORT FOR Q2 2023/24 AND THE HALF-YEAR

1 Company announcement no. 11 2023/24 | 14 May 2024

Ambu A/S, Baltorpbakken 13, DK-2750 Ballerup Registration no. 63644919

INTERIM REPORT FOR Q2 2023/24 AND THE HALF-YEAR

In the second quarter of the 2023/24 financial year, Ambu delivered 15.5% organic revenue growth and a 14.2% EBIT margin before special items. This was driven by Endoscopy Solutions growing 22.3% and Anaesthesia & Patient Monitoring growing 7.0%.

On April 10, 2024, Ambu raised its financial guidance by upgrading its full-year organic revenue growth to 10-12% from 7-10% and EBIT margin before special items to 10-12% from 8-10%. In addition, the company raised its free cash flow expectations to DKK +370m from DKK +270m. This was mainly driven by better-thanexpected outcomes of contract negotiations in Anaesthesia & Patient Monitoring.

"I am pleased with the performance within the second quarter of our fiscal year 2023/24, where our Endoscopy Solutions business delivered 22.3% organic revenue growth, and we improved both our profitability and free cash flow, slightly ahead of our ongoing transformation to deliver profitable growth.

Our Endoscopy Solutions business grew in all segments, and we recently expanded and strengthened our offering within gastroenterology by obtaining North American regulatory clearance (FDA) of aScope™ Gastro Large and aScope™ Duodeno 2. All in all, strengthening our customer value proposition and foundation for long-term growth, and I am thankful for the great work by colleagues across Ambu."

BRITT MEELBY JENSEN Chief Executive Officer

Q2 2023/24 conference call

A conference call is broadcast live today, Tuesday 14 May 2024, at 11:00 (CET), via ambu.com/webcastQ22024. To ask questions during the Q&A session, please register prior to the call via ambu.com/conferencecallQ22024register. Upon registration, you will receive an e-mail with information to access the call. The presentation can be downloaded at Ambu.com/presentations.

HIGHLIGHTS FOR THE QUARTER

Last year's comparative figures are presented in brackets.

Financial highlights

• ● Revenue for Q2 increased organically by 15.5% (4.2%) to DKK 1,367m (DKK 1,189m), with reported growth of 15.0% (6.0%). Organic growth for the half-year was 14.9% (4.0%), with reported growth of 12.9% (7.8%).
• ● Endoscopy Solutions revenue increased organically by 22.3% (10.6%) and by 23.6% (6.7%) for the half-year. Pulmonology posted 13.9% (-3.4%) organic growth, and Endoscopy Solutions excluding pulmonology posted 33.3% (36.3%) organic growth, driven by high double-digit growth in urology and ENT.
• ● Anaesthesia & Patient Monitoring increased organically by 7.0% (-2.8%) and by 4.2% (0.9%) for the half-year, driven by positive outcomes of contract negotiations.
• ● EBIT before special items for the quarter was DKK 194m (DKK 46m), with an EBIT margin before special items of 14.2% (3.9%). EBIT for the half-year ended at DKK 320m (DKK 114m), with an EBIT margin of 12.2% (4.9%). The improved EBIT margin was driven by organic revenue growth, resulting in operational leverage, slightly offset by investment in resources to drive organic growth. The investments are expected to increase for the remaining fiscal year.
• ● Free cash flow before acquisitions totalled DKK 128m (DKK 21m) for the quarter and DKK 263m (DKK -153m) for the half-year.
• The adjusted FY 2023/24 financial guidance stated on 10 April 2024 is maintained:
  • Organic revenue growth: 10-12% (7-10%)
  • EBIT margin before special items: 10-12% (8-10%)
  • Free cash flow: DKK +370m (DKK +270m)

Business highlights

• ● Strengthened gastroenterology (GI) offering, with North American regulatory clearance (FDA) of:
  • aScope™ Gastro Large & aBox™ 2. With the European clearance (CE mark) obtained in September 2023, the global commercialisation begins.
  • aScope™ Duodeno 2 & aBox™ 2, initialising an extended controlled market release with key hospitals in North America. European clearance (CE mark) is expected to be obtained later in the 2024 calendar year.
• ● Announcing Ambu Broncho Simulator a software-based training platform developed with Artificial Intelligence for pulmonology training purposes.

FINANCIAL HIGHLIGHTS

DKKm	Q2 2023/24	Q2 2022/23	YTD 2023/24	YTD 2022/23	FY 2022/23
Income statement
Revenue	1,367	1,189	2,621	2,321	4,775
Gross profit	813	664	1,552	1,326	2,713
EBITDA before special items	285	125	498	273	632
Depreciation, amortisation and impairment	-91	-79	-178	-159	-330
EBIT before special items	194	46	320	114	302
Special items	0	0	0	0	-8
EBIT	194	46	320	114	294
EBITDA	285	125	498	273	642
Net financials	-7	-27	-13	-67	-84
Profit before tax	187	19	307	47	210
Net profit for the period	144	15	236	37	168
Cash flow
Cash flow from operating activities (CFFO)	196	99	385	1	518
Cash flow from investing activities (CFFI)	-68	-78	-122	-154	-326
Free cash flow (FCF)	128	21	263	-153	192
CFFO, % of revenue	14	8	15	0	11
CFFI, % of revenue	-5	-6	-5	-7	-7
FCF, % of revenue	9	2	10	-7	4
Balance sheet
Assets	7,061	6,937	7,061	6,937	6,859
Net working capital	1,011	1,108	1,011	1,108	939
Equity	5,605	5,212	5,605	5,212	5,393
Net interest-bearing debt	243	733	243	733	427
Invested capital	5,848	5,945	5,848	5,945	5,820

DKKm	Q2 2023/24	Q2 2022/23	YTD 2023/24	YTD 2022/23	FY 2022/23
Key figures and ratios
Organic growth, %	15.5	4.2	14.9	4.0	7.6
Gross margin, %	59.5	55.8	59.2	57.1	56.8
OPEX ratio, %	45.3	52.0	47.0	52.2	50.5
EBITDA margin before special items, %	20.8	10.5	19.0	11.8	13.2
EBIT margin before special items, %	14.2	3.9	12.2	4.9	6.3
EBIT margin, %	14.2	3.9	12.2	4.9	6.2
EBITDA margin, %	20.8	10.5	19.0	11.8	13.4
Tax rate, %	23	21	23	21	20
Return on equity, %	13	-1	13	-1	3
NIBD/EBITDA before special items	0.3	1.6	0.3	1.6	0.7
Equity ratio, %	79	75	79	75	79
Net working capital, % of revenue	20	24	20	24	20
Return on invested capital (ROIC), %	7	2	7	2	4
Average number of employees	4,799	4,290	4,750	4,350	4,385
Share-related ratios (in DKK)
Market price per share	114	103	114	103	74
Earnings per share (EPS)	0.54	0.06	0.89	0.15	0.64
Diluted earnings per share (EPS-D)	0.54	0.06	0.89	0.15	0.64

Key figures and ratio definitions are consistent with the ones applied in the Annual Report 2022/23.

BUSINESS PERFORMANCE -- IN BRIEF

Business areas

DKKm	Q2 2023/24	Split	Q2 2022/23	Organic	Currency	Reported	YTD 2023/24	YTD 2022/23	Organic	Currency	Reported
Endoscopy solutions	807	59%	663	22.3%	-0.6%	21.7%	1,555	1,280	23.6%	-2.1%	21.5%
- Pulmonology	427	31%	378	13.9%	-0.9%	13.0%	825	724	15.9%	-1.9%	14.0%
- Excluding pulmonogy	380	28%	285	33.3%	0.0%	33.3%	730	556	33.7%	-2.4%	31.3%
Anaesthesia & Patient Monitoring	560	41%	526	7.0%	-0.5%	6.5%	1,066	1,041	4.2%	-1.8%	2.4%
- Anaesthesia	287	21%	264	9.1%	-0.4%	8.7%	555	537	5.7%	-2.3%	3.4%
- Patient Monitoring	273	20%	262	4.8%	-0.6%	4.2%	511	504	2.5%	-1.1%	1.4%
Total	1,367	100%	1,189	15.5%	-0.5%	15.0%	2,621	2,321	14.9%	-2.0%	12.9%

Geographies

DKKm	Q2 2023/24	Split	Q2 2022/23	Organic	Currency	Reported	YTD 2023/24	YTD 2022/23	Organic	Currency	Reported
North America	684	50%	586	18.9%	-2.2%	16.7%	1,315	1,171	16.0%	-3.7%	12.3%
Europe	541	40%	473	13.7%	0.7%	14.4%	1,046	913	14.3%	0.3%	14.6%
Rest of World	142	10%	130	7.5%	-1.7%	9.2%	260	237	11.9%	-2.2%	9.7%
Total	1,367	100%	1,189	15.5%	-0.5%	15.0%	2,621	2,321	14.9%	-2.0%	12.9%

Q2 2023/24 - ORGANIC GROWTH IN ENDOSCOPY SOLUTIONS

Q2 2023/24 - SPLIT IN ENDOSCOPY SOLUTIONS

Endoscopy Solutions excl. pulmonology

47%

4 Company announcement no. 11 2023/24 | 14 May 2024

Q2 2023/24 - SHARE OF REVENUE BY BUSINESS AREA

STRATEGY EXECUTION IN Q2 2023/24

Provide innovative solutions for true customer needs

• North American regulatory clearance (FDA) of aScope™ Gastro Large solution. With European clearance (CE mark) obtained in September 2023, the global commercialisation begins.
• Ambu's new generation duodenoscope aScope™ Duodeno 2, developed in valuable collaboration with healthcare professionals to meet advanced demands for ERCP procedures, received FDA clearance.
• Announcing Ambu Broncho Simulator a software-based training platform developed with Artificial Intelligence, intended for pulmonology training.

Excel in execution across the value chain

• Profitable growth strengthened, reflected by 22.3% growth in Endoscopy Solutions, driven by solid performance across all endoscopy segments.
• Advanced free cash flow of DKK 128m, attributable to strong operational performance.
• Continuous focus on cost and efficiency across the business, driving solid profitability and cash flow generation in H1 2023/24.

Take leaps towards a sustainable future

• With the FDA clearance of the aScope™ Gastro Large solution, the first of Ambu's fleet of endoscopes to be manufactured with bioplastics are ready to be launched in the U.S.
• Continued progress to implement bioplastics in Ambu's full fleet of single-use endoscopes by early 2024/25.

Bring people together in one shared culture

• Transformation program is progressing well, with an improved organisational setup (incl. expansion of leadership), to improve efficiency and reduce complexity.
• Ambition and focus on strengthening Ambu's global mindset and efforts, building for greater customer impact, collaboration and success.

ENDOSCOPY SOLUTIONS PERFORMANCE

Last year's comparative figures are stated in brackets.

Endoscopy Solutions sales for the quarter were up, reflecting organic growth of 22.3% (10.6%) and reported growth of 21.7% (12.8%), with revenue of DKK 807m (DKK 663m). Endoscopy Solutions accounted for 59% (56%) of Ambu's total revenue in Q2 2023/24.

The satisfactory growth in Endoscopy Solutions was mainly driven by Ambu's pre-existing solutions in the growing single-use market.

DRIVERS OF THE QUARTER

Pulmonology posted 13.9% organic for Q2, accounting for 53% of the total endoscopy revenue. Ambu's bronchoscopy portfolio was the biggest growth contributor, while also VivaSight™ 2 DLT contributed positively, due to the global market re-launch in March 2023.

Moreover, the strong growth in pulmonology was positively impacted by the flu season this quarter, which overall reached a level above a five-year average. It was also slightly positively impacted by post-Covid-19 market normalisation, with health systems having more balanced order patterns.

The Center for Medicare & Medicaid Services (CMS) granted the aScope 5 Broncho HD TPT effective 1 January 2024, enabling incremental reimbursement payments for outpatient procedures performed with Ambu's fifth-generation bronchoscope. TPT was granted due to the solution's substantial clinical improvement, compared to existing single-use and reusable bronchoscopy technologies. Ambu hasted outcomes received positive interest towards this opportunity.

The aScope™ 5 Broncho HD targets the bronchoscopy suite, representing a new customer group for Ambu.

Feedback continues to be positive, resounding the aScope™ 5 Broncho's excellent performance, compared to reusable bronchoscopes.

In Q2, Ambu is also announcing Ambu Broncho Simulator, which is a software-based training platform developed with Artificial Intelligence, intended for pulmonology training.

Endoscopy Solutions excluding pulmonology

posted 33.3% organic growth, accounting for 47% of Ambu's total endoscopy revenue. The biggest growth drivers were urology and ENT, which posted continued high double-digit growth.

Ear-nose-throat (ENT) and urology continued their double-digit organic growth trajectory, due to an increased pace of order uptakes and penetration of new customers, especially in North America and Europe. Otolaryngologists and urologists value the workflow efficiencies brought forth by Ambu's singleuse solutions, which supports the continued conversion towards single-use in the two segments.

Gastroenterology (GI) sales continued growing and were mainly driven by Ambu's two gastroscope solutions, aScope™ Gastro and aScope™ Gastro Large. The GI segment accounts for a small part of Ambu's Endoscopy Solutions business, representing a longterm growth potential for Ambu. Focus is on applying a stepwise expansion within high-need, niche areas and bringing new functionalities to customers by leveraging new technology, fuelling long-term growth.

In Q2, Ambu strengthened its gastroenterology (GI) offering by obtaining North American regulatory clearance of two new solutions, the aScope™ Gastro Large and aScope™ Duodeno. The aScope™ Gastro Large is designed to address acute therapeutic procedures in the ICU, thereby complimenting the aScope™ Gastro solution, which targets procedures outside of the endoscopy unit, such as surgical gastroscopies in the OR and bedside procedures in the ICU. Both solutions are now commercially available in Europe and North America. Globally, the aScope™ Gastro Large targets 1.5 million annual procedures, while the aScope™ Gastro is expected to meet needs within a market of 2 million annual procedures.

The new generation aScope™ Duodeno 2 constitutes a step change from previous generations, driven by valuable collaboration with healthcare professionals and aimed to meet the unique needs of gastroenterologists performing ERCP procedures. Ambu will conduct an extended controlled market release with key hospitals to evaluate the clinical performance in a real-life setting. The solution will be available in the market from 2024/25, and European clearance is expected to be obtained later in 2024. Globally, the solution targets 0.4 million annual procedures.

Endoscopy Solutions organic revenue growth

22.3% in Q2 2023/24

ANAESTHESIA & PATIENT MONITORING PERFORMANCE

Last year's comparative figures are stated in brackets.

Organic growth in Anaesthesia & Patient Monitoring was 7.0% (-2.8%) in Q2, and reported growth was 6.5% (-1.5%). With revenue of DKK 560m, Anaesthesia & Patient Monitoring accounted for 41% (44%) of Ambu's total revenue for the quarter.

DRIVERS OF THE QUARTER

Similar to Endoscopy Solutions, Anaesthesia & Patient Monitoring was impacted by normalised post-Covid-19 levels, with stable market growth.

Last year, Ambu announced that the company would launch strategic initiatives to increase profitability by implementing price increases in selected low-margin areas within Anaesthesia & Patient Monitoring. As contracts typically run for 1-3 years and thus are renewed and re-negotiated over time, the price increases are expected to be implemented on a rolling basis throughout the coming years. In general, the price increases are being implemented gradually, and based on better-than-expected outcomes of contract negotiations, Ambu now expects positive growth in Anaesthesia & Patient Monitoring. Still, the volume growth prospects are not fully visible, leaving Anaesthesia & Patient Monitoring with some degree of uncertainty.

The performance was slightly offset by Ambu's exit from ~40 markets, where the majority is related to the Anaesthesia & Patient Monitoring business. The exit of these markets has already been completed.

Ambu has made significant progress wit

FINANCIAL RESULTS

INCOME STATEMENT

DKKm	Q2 2023/24	Q2 2022/23	Change in value	Change %	YTD 2023/24	YTD 2022/23	Change in value	Change %
Revenue	1,367	1,189	178	15%	2,621	2,321	300	12.9%
Production costs	-554	-525	-29	6%	-1,069	-995	-74	7.4%
Gross profit	813	664	149	22%	1,552	1,326	226	17.0%
Gross margin, %	59.5	55.8	‐	‐	59.2	57.1	‐	‐
Selling and distribution costs	-381	-394	13	-3%	-759	-780	21	-2.7%
Development costs	-81	-69	-12	17%	-155	-138	-17	12.3%
Mgmt and admin. costs	-157	-155	-2	1%	-318	-294	-24	8.2%
Total OPEX	-619	-618	-1	0%	-1,232	-1,212	-20	1.7%
EBIT	194	46	148	322%	320	114	206	180.7%
EBIT margin, %	14.2	3.9	‐	‐	12.2	4.9	‐	‐

REVENUE

Revenue for Q2 was DKK 1,367m (DKK 1,189m), reflecting a reported growth of 15.0% (6.0%) and a 15.5% (4.2%) underlying organic growth.

Revenue year-to-date was DKK 2,621m (DKK 2,321m), equivalent to reported growth of 12.9% (7.8%) and organic growth of 14.9% (4.0%).

GROSS PROFIT

Gross profit in Q2 was up 22.4% to DKK 813m (DKK 664m), and the gross margin increased by 3.7 percentage points to 59.5% (55.8%). The increase in gross margin was mainly driven by scale in our production costs and some tailwinds from currencies.

For-the-year to date, gross profit was DKK 1,552m (DKK 1,326m), and the gross margin increased by 2.1 percentage points .

The average exchange rate in Q2, changed against DKK, relative to last year was as follows: USD by -1%, MYR -8%, CNY -6% and GBP 3%. The combined exchange rate impact on the reported revenue growth in percentage points for Q2 was -0.5%, while being - 2.0% for the year-to-date.

Revenue (DKKm) and gross margin (%)

OPERATING EXPENDITURES (OPEX)

In Q2, OPEX totalled DKK 619m, consistent with last year's figure of DKK 618m, showing insignificant net changes compared to last year. Currency effects were negligible.

The underlying expense composition in Q2 was impacted by a significant decrease in freight costs, due to higher rate levels in Q2 last year, although off-set by increased depreciations and amortisations and lower level of capitalised staff costs, compared to last year.

The OPEX ratio was 45.3% (52.0%).

Year-to-date, OPEX totalled DKK 1,232m (DKK 1,212m), corresponding to 47.0% (52.2%) of revenue.

Total OPEX in DKKm and relative to revenue (%)

SELLING AND DISTRIBUTION COSTS

Selling and distribution costs were DKK 381m (DKK 394m) in Q2, down by 3% from the prior-year period.

Overall, the decrease was driven by distribution costs, partly off-set by higher sales costs as investments in the sales force have been increased.

Selling and distribution costs corresponded to 27.9% (33.1%) of revenue in Q2.

Year-to-date costs were DKK 759m (DKK 780m), corresponding to 29.0% (33.6%) of revenue.

DEVELOPMENT COSTS

Development costs in Q2 totalled DKK 81m (DKK 69m).

Year-to-date, development costs totalled DKK 155m (DKK 138m), corresponding to 5.9% (5.9%) of revenue.

Total cash flow impact of R&D was DKK 130m, corresponding to a decrease of DKK 37m, compared to the prior-year period. The decrease is according to plan.

Cash flow impact of development costs

DKKm	YTD 2023/24	YTD 2022/23	Change in value
Development costs	155	138	17
- Depreciation,	-102	-83	-19
amortisation and
impairment losses
+ Investments	77	112	-35
= Cash flow, R&D	130	167	-37

MANAGEMENT AND ADMINISTRATIVE COSTS

Management and administrative costs for Q2 were DKK 157m (DKK 155m), corresponding to 11.5% (13.0%) of revenue.

Year-to-date, costs totalled DKK 318m (DKK 294m), corresponding to 12.1% (12.7%) of revenue.

SPECIAL ITEMS

Year-to-date, special items was DKK 0m (DKK 0m).

EBIT

Operating profit (EBIT) was DKK 194m (DKK 46m) in Q2, with an EBIT margin of 14.2% (3.9%). EBIT was DKK 320m (DKK 114m) for the year-to-date, with an EBIT margin of 12.2% (4.9%).

The improved EBIT margin of 10.3 percentage points, compared to Q2 last year, was driven by revenue growth, improved gross margin and scale effects from unchanged OPEX, while soft tailwinds from currencies accounted for approximately 1 percentage point for the quarter and year-to-date.

EBIT before special items (DKKm) and relative to revenue (margin, %)

DEPRECIATION, AMORTISATION AND IMPAIRMENT

Depreciation, amortisation and impairment (DA) for Q2 represented an expense of DKK 91m (DKK 79m), corresponding to 6.7% (6.6%) of revenue.

Year to date, DA represented an expense of DKK 178m (DKK 156m), corresponding to 6.8% (6.7%) of the revenue. The increase in value was driven by amortisations from completed development projects.

EBITDA

EBITDA was DKK 285m (DKK 125m), with an EBITDA margin of 20.8% (10.5%).

NET FINANCIALS

Net financials amounted to an expense of DKK 13m (DKK 67m) for the year -to -date, corresponding to a decrease of DKK 54m in net financials.

The decrease in net financials is driven by foreign exchange losses, mainly from intercompany receivables, denominated in USD, and interest expenses from banks.

For the year -to -date, bank interest was an income of DKK 1m (expense of DKK 29m), and interest expenses from leases was DKK 9m (DKK 9m).

TAX ON PROFIT

Tax on profit for Q2 was a net expense of DKK 43m (DKK 4m) and DKK 71m (DKK 10m) for the year -to date, corresponding to an average effective tax rate on profit of 23% (21%) year -to -date.

NET PROFIT

Net profit for Q2 was DKK 144m (DKK 15m) and DKK 236m (DKK 37m) for the year -to -date, equivalent to 9% (2%) of revenue.

DILUTED EARNINGS PER SHARE

Diluted earnings per share (EPS -D) for Q2 were DKK 0.54 (DKK 0. 06) and DKK 0.89 (DKK 0.15) for the year to -date .

CASH FLOW STATEMENT

Cash flow condensed by main items

DKKm	Q2 2023/24	Q2 2022/23	Change in value	YTD 2023/24	YTD 2022/23	Change in value
Net profit	144	15	129	236	37	199
Tax, financials and DA	141	110	31	262	233	29
EBITDA	285	125	160	498	270	228
Change in working capital	-67	14	-81	-82	-199	117
Other items	-22	-40	18	-31	-70	39
Cash flow from operating activities (CFFO)	196	99	97	385	1	384
Cash flow from investing activities (CFFI)	-68	-78	10	-122	-154	32
Free cash flow (FCF)	128	21	107	263	-153	416
Cash flow from financing activities (CFFF)	-16	234	-250	-31	148	179
Changes in cash	112	110	2	232	-5	237
Cash flow in % of revenue:
Cash flow from operating activities (CFFO)	14	8	‐	15	0	‐
Cash flow from investing activities (CFFI)	-5	-6	‐	-5	-7	‐
Free cash flow (FCF)	9	2	‐	10	-7	‐

Free cash flow before acquisitions (DKKm) and CFFO and CFFI relative to revenue (%)

CFFO AND CFFI

Cash flow from operating activities (CFFO) for Q2 was DKK 196m (DKK 99m), corresponding to a change of DKK 97m. Overall, the increase was driven by an improved profitability, however, slightly reduced by working capital investments to support the growing business.

CFFO for the year-to-date was DKK 385m (DKK 1m).

Cash flow from investing activities (CFFI) for the yearto-date was DKK -122m (DKK -154m), primarily driven by R&D activities of DKK -77m (DKK -112m) and investments into production capacities and IT projects.

FREE CASH FLOW

Free cash flow (FCF) for Q2 totalled DKK 128m (DKK 21m), and FCF for the year-to-date was DKK 263m, up DKK 416m, compared to the same period last year. The improvement was mainly driven by improved profitability and lower investments in working capital, due to a soft comparison as net working capital was significantly higher last year.

Cash flow from financing activities (CFFF) amounted to DKK -16m (DKK 234m) for the quarter and DKK -31m (DKK 346m) for the year-to-date.

BALANCE SHEET

Balance sheet condensed by main items

DKKm	Q2 2023/24	FY 2022/23	Change in value	Change in %
Non-current assets	4,821	4,851	-30	-1%
Inventories	920	907	13	1%
Trade receivables	744	766	-22	-3%
Other current assets	189	178	11	6%
Cash and cash equivalents	387	157	230	146%
Total assets	7,061	6,859	202	3%
Equity	5,605	5,393	212	4%
Interest-bearing debt	630	584	46	8%
Trade and other payables	785	851	-66	-8%
Other liabilities	41	31	10	32%
Total equity and liabilities	7,061	6,859	202	3%

At the end of Q2, total assets were DKK 7,061m, up DKK 202m from FY 2022/23, and invested capital was DKK 5,848m.

NON-CURRENT ASSETS

Non-current assets at the end of Q2 were DKK 4,821m, constituting a DKK -30m decrease from FY 2022/23, driven by DKK -11m in currency translations and DKK - 178m in amortisation and depreciation, partly offset by total investments of DKK 122m and lease commencement of DKK 63m.

NET WORKING CAPITAL

Net working capital (NWC) for Q2 was DKK 1,011m, up DKK 72m since FY 2022/23. NWC corresponded to 20% (24%) of revenue on a 12-month basis.

Net working capital (DKKm) and net working capital relative to revenue (%)

INVENTORIES

Inventories were DKK 920m, up DKK 13m from FY 2022/23, equivalent to 18% (24%) of revenue on a 12 month basis.

Inventories in DKKm and relative to revenue on a 12-month basis (%)

TRADE RECEIVABLES

Trade receivables amounted to DKK 744m at the end of Q2, versus DKK 766m at the end of FY 2022/23. The financial risk on trade receivables remained low, unchanged from last year. Trade receivables constituted 15% (16%) of revenue on a 12-month basis.

TRADE PAYABLES AND OTHER PAYABLES

Trade payables and other payables decreased since FY 2022/23 by DKK 66, to DKK 785m, primarily due to the payments of last year's performance bonuses and timing in payments.

NIBD AND LEVERAGE

Cash and cash equivalents amounted to DKK 387m, up DKK 230m since FY 2022/23, mainly due to the strong free cash flow in both Q1 and Q2.

Net interest-bearing debt (NIBD) was DKK 243m by the end of Q2, down by DKK 184m since FY 2022/23, driven by the change in cash and cash equivalent, however slightly reduced by commenced leases.

CAPITAL RESOURCES IN PLACE

Total credit lines in Q2 were DKK 1,800m, unchanged since FY 2022/23, of which DKK 0m was utilised.

At the end of Q2, Ambu had unutilised capital resources from cash and cash equivalents, as well as overdraft facilities and credit lines, of approximately DKK 2.2bn.

NIBD (DKKm), EBITDA before special items (DKKm) and NIBD/EBITDA before special items

EQUITY

At the end of March 2024, equity totalled DKK 5,605m, corresponding to an equity ratio of 79%. The share capital was DKK 135m, distributed on 269.3m shares.

At the Annual General Meeting, held on 13 December 2023, a proposal to not distribute dividend was adopted, and ordinary dividend to the shareholders will consequently be DKK 0m (DKK 0m).

Ambu's holding of Class B treasury shares was 2,993,000 by end of Q2, unchanged from FY 2022/23, corresponding to 1.1% of the total share capital.

OTHER COMPREHENSIVE INCOME

Other comprehensive income included a translation adjustment, arising from the translation of subsidiaries in foreign currency, for the year-to-date of DKK -37m (DKK -188m). The reduction was driven by the depreciating USD/DKK since FY 2022/23.

SUSTAINABILITY UPDATE

Ambu continues to make strides in sustainability and has, as a result, been recognised as a market leader for several years. For Ambu, sustainability is a true differentiator and a source of competitive advantage, and the company is committed to advancing the agenda by leapfrogging towards a sustainable future. For Ambu, the sustainability agenda centres on two main areas: 1) Circular products and packaging, and 2) Approaching net-zero emissions.

CIRCULAR PRODUCTS AND PACKAGING

Ambu is dedicated to sustainable endoscopy by designing products and packaging that facilitate recycling through the use of sustainable materials. In April 2024, Ambu obtained FDA clearance of aScope™ Gastro Large, an endoscope with a handle made with bioplastics.

• aScope™ Gastro Large is the first of Ambu's fleet of endoscopes to be manufactured with bioplastics and thus represents an important step forward in the company's commitment to integrating bioplastics in all future endoscope handles by the end of 2024.

NET-ZERO EMISSIONS

Ambu is committed to operating responsibly and approaching net-zero emissions in collaboration with suppliers and other partners. To deliver on its near-term carbon reduction targets for scope 1, 2 and 3 greenhouse gas emissions*, Ambu is executing on its plan, which includes:

• For targets encompassing operational facilities (Scope 1 and Scope 2), Ambu will expand the use of renewable energy and reduce the energy consumption through a combination of Renewable Energy Certificates (RECs), Power Purchase Agreements (PPAs) and investment in installation of renewable power, e.g., solar panels, in close proximity to the company's production sites.
• For targets attributed to its entire value chain (Scope 3), Ambu will continue to focus on engagement with suppliers to further their sustainable transformation.

Ambu's near-term targets are key building blocks in the company's long-term objective to achieve net-zero emissions across the value chain by 2045. Ambu expects to submit its long-term carbon reduction targets to the Science Based Target initiative during the 2023/24 financial year.

ENVIRONMENTAL SUSTAINABILITY HIGHLIGHTS

Journey towards net-zero emissions

	YTD 23/24	YTD 23/24	Change (%)
Recycled waste, % of total waste	51%	45%	15%
Waste per tonne finished goods	0.28	0.28	2%
CO2e** per tonne finished goods	1.82	2.01	-10%
Energy per product (GJ per tonne finished goods)	19	22	-9%

** Including scope 1 and 2

Focus on waste management

Waste management remains a focus area across Ambu's manufacturing sites and offices. Year to date, Ambu has had a 15% increase in the share of recycled waste, compared to same period the year before. However, due to the increase in production output at manufacturing sites, as well as the number of employees, the waste per tonne of finished goods increased by 2%. Ambu continues to focus on waste management initiatives, which includes recycling and converting food waste into biogas and fertilizers, as well as recycling materials (runners) from injection moulding processes at manufacturing sites.

Focus on CO2 reduction

Ambu continues its carbon reductions efforts, in line with our near-term carbon reduction targets, which are validated by the Science Based Target initiative. Year to date, the CO2e per tonne finished goods decreased by 10%, due to, among other things, increased production, accompanied by energy efficiency measures at Ambu's manufacturing sites. The 9% decrease in energy consumed per tonne of finished goods is a positive development, showing a decoupling of energy consumption and product output. Ambu continues its targeted efforts with energy improvement

measures, as well as strengthened data collection. • Scope ¹ includes greenhouse gas emissions occurring from activities under Ambu's direct control in sources that are owned or controlled by Ambu. Scope 2 refers to indirect greenhouse gas emissions caused by the energy Ambu purchases, such as electricity and district heating. Scope 3 encapsulates indirect greenhouse gas emissions – not included in scope 2 – that occur in our value chain, including both upstream and downstream emissions.

FINANCIAL OUTLOOK 2023/24

The financial outlook for the 2023/24 financial year was adjusted in connection with the announcement of preliminary results on 10 April 2024 – and is maintained as of 14 May 2024. The outlook for organic revenue growth is 10-12%, and the outlook for EBIT margin before special items is 10-12%. In addition, Ambu now – as of 14 May 2024 – assumes organic growth from Endoscopy Solutions to reach above 15% (previously around 15%).

Local currencies	10 Apr, 2024	8 Nov, 2023
Organic revenue growth	10-12%	7-10%

Danish Kroner	10 Apr, 2024	8 Nov, 2023
EBIT margin before special items	10-12%	8-10%
Free cash flow	DKK +370m	DKK +270m

Exchange rate assumptions for 2023/24

	14 May, 2024	8 Nov, 2023
USD/DKK	6.93	6.95
MYR/DKK	1.46	1.47
CNY/DKK	0.96	0.98
GBP/DKK	8.67	8.61

FORWARD-LOOKING STATEMENTS

Forward-looking statements, in particular relating to future sales, operating income and other key financials, are subject to risks and uncertainties. Various factors, many of which lie outside of Ambu's control, may cause the realised results to differ materially from the expectations presented in this earnings release. Such factors include, but are not confined to, changes in market conditions and the competitive situation, changes in demand and purchasing patterns, fluctuations in foreign exchange and interest rates, as well as general economic, political and commercial conditions.

Financial calendar
2023/24
30 Aug 30 Sep	Earnings release Q3 2023/24 End of 2023/24 financial year
2024/25
31 Oct	Deadline for the inclusion of specific items on the agenda for the Annual General Meeting 2024
5 Nov	Annual Report 2023/24
4 Dec	Annual General Meeting 2024

QUARTERLY RESULTS

DKKm	Q2 2023/24	Q1 2023/24	Q4 2022/23	Q3 2022/23	Q2 2022/23	Q1 2022/23
Revenue by products:
Pulmonology	427	398	390	373	378	346
Endoscopy Solutions excl. pulmonology	380	350	333	311	285	271
Endoscopy Solutions	807	748	723	684	663	617
Anaesthesia	287	268	285	271	264	273
Patient Monitoring	273	238	251	240	262	242
A&PM	560	506	536	511	526	515
Revenue	1,367	1,254	1,259	1,195	1,189	1,132
Production costs	-554	-515	-544	-523	-525	-470
Gross profit	813	739	715	672	664	662
Selling and distribution costs	-381	-378	-383	-359	-394	-386
Development costs	-81	-74	-82	-75	-69	-69
Management and administrative costs	-157	-161	-153	-147	-155	-139
Operating profit (EBIT) before
special items	194	126	97	91	46	68
Special items	0	0	-6	-2	0	0
Operating profit (EBIT)	194	126	91	89	46	68
Financial income	4	3	2	0	-1	1
Financial expenses	-11	-9	7	-26	-26	-41
Profit before tax (PBT)	187	120	100	63	19	28
Tax on profit for the period	-43	-28	-20	-12	-4	-6
Net profit for the period	144	92	80	51	15	22
Key figures and ratios:
Gross margin, %	59.5	58.9	56.8	56.2	55.8	58.5
Operating Expenditures (OPEX)	619	613	618	581	618	594
OPEX ratio, %	45.3	48.9	49.1	48.6	52.0	52.5
EBITDA before special items	285	213	189	173	125	145
EBITDA margin before special items, %	20.8	17.0	15.0	14.5	10.5	12.8
EBIT margin before special items, %	14.2	10.0	7.7	7.6	3.9	6.0
NIBD/EBITDA before special items	0.3	0.5	0.7	1.2	1.6	3.9
Net working capital, % of revenue	20	19	20	21	24	25

Organic growth, products, %:	-16.8 46.6 2.6
Pulmonology 13.9 18.1 15.9 16.0 -3.4
Endoscopy Solutions excl. pulmonology 33.3 34.2 37.2 33.2 36.3
Endoscopy Solutions 22.3 25.1 24.9 23.3 10.6
Anaesthesia 9.1 2.2 7.4 -7.1 -11.3	4.3
Patient Monitoring 4.8 0.0 -3.0 -7.4 7.8	6.0
A&PM 7.0 1.2 2.3 -7.2 -2.8	5.1
Organic growth 15.5 14.2 14.1 8.1 4.2	3.7
Exchange rate effects -0.5 -3.3 -5.8 -2.2 1.8	6.1
Reported revenue growth 15.0 10.9 8.3 5.9 6.0	9.8
Organic growth, markets, %:
North America 18.9 13.2 22.6 9.2 8.2	8.7
Europe 13.7 14.6 6.6 9.8 -1.2	-4.2
Rest of World 7.5 18.2 2.7 -1.9 7.3	14.3
Organic growth 15.5 14.2 14.1 8.1 4.2	3.7
Cash flow, DKKm:
Cash flow from operating activities 196 189 273 244 99	-98
Cash flow from investing activities -68 -54 -85 -87 -78	-76
Free cash flow 128 135 188 157 21	-174
Cash flow, % of revenue:
Cash flow from operating activities 14 15 22 20 8	-9
Cash flow from investing activities -5 -4 -7 -7 -6	-6
Free cash flow 9 11 15 13 2	-15
Balance sheet:
Assets 7,061 6,838 6,859 6,824 6,937	7,006
Net working capital 1,011 932 939 987 1,108	1,144
Equity 5,605 5,421 5,393 5,240 5,212	4,122
Net interest-bearing debt 243 351 427 600 733	1,817
Invested capital 5,848 5,772 5,820 5,840 5,945	5,939
Share-related ratios (in DKK):
Market price per share 114 105 74 112 103	89
Earnings per share (EPS) 0.54 0.35 0.30 0.19 0.06	0.09
Diluted earnings per share (EPS-D) 0.54 0.35 0.30 0.19 0.06	0.09

MANAGEMENT'S STATEMENT

The Board of Directors and the Executive Management have today considered and approved the interim report of Ambu A/S for the period from 1 October 2023 to 31 March 2024. The interim report has not been audited or reviewed by the company's independent auditors.

The interim report is presented in accordance with IAS 34 – Interim Financial Reporting, as adopted by the EU and additional Danish disclosure requirements for the interim reporting of listed companies.

In our opinion, the financial report for the first six months of 2023/24 gives a true and fair view of the Group's assets, liabilities and financial position at 31 March 2024 and of the results of the Group's operations and cash flows for the period 1 October 2023 to 31 March 2024. Furthermore, in our opinion, Management's review includes a fair account of the development in the activities and financial position of the Group, as well as a description of the most significant risks and elements of uncertainty to which the Group is subject.

Besides what has been disclosed in the quarterly financial report, no changes in the Group's most significant risks and uncertainties have occurred, relative to what was disclosed in the consolidated Annual Report 2022/23.

Copenhagen, 14 May 2024

EXECUTIVE MANAGEMENT

Chief Executive Officer Chief Financial Officer

Britt Meelby Jensen Henrik Skak Bender

BOARD OF DIRECTORS

Jørgen Jensen Shacey Petrovic Chair Vice Chair

Member Member

Member Member

Employee-elected member Employee-elected member

Thomas Bachgaard Jensen Employee-elected member

Christian Sagild Susanne Larsson

Michael del Prado Simon Hesse Hoffmann

Charlotte Elgaard Bjørnhof Jesper Bartroff Frederiksen

CONSOLIDATED FINANCIAL STATEMENTS

INTERIM REPORT Q2 2023/24

CONTENTS

• Page 19 Income statement and statement of comprehensive income
• Page 20 Cash flow statement
• Page 21 Balance sheet
• Page 22 Statement of changes in equity
• Page 23 Notes to the interim report

INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

INTERIM REPORT Q2 2023/24

Income statement Note Q2 2023/24 Q2 2022/23 YTD 2023/24 YTD 2022/23 FY 2022/23 Revenue 3 1,367 1,189 2,621 2,321 4,775 Production costs -554 -525 -1,069 -995 -2,062 Gross profit 813 664 1,552 1,326 2,713 Selling and distribution costs -381 -394 -759 -780 -1,522 Development costs -81 -69 -155 -138 -295 Management and administrative costs -157 -155 -318 -294 -594 Operating profit (EBIT) b. s. i. 194 46 320 114 302 Special items 0 0 0 0 -8 Operating profit (EBIT) 194 46 320 114 294 Financial income 4 -1 7 0 2 Financial expenses -11 -26 -20 -67 -86 Profit before tax 187 19 307 47 210 Tax on profit for the period -43 -4 -71 -10 -42 Net profit for the period 144 15 236 37 168 Earnings per share in DKK Earnings per share (EPS) 0.54 0.06 0.89 0.15 0.64 Diluted earnings per share (EPS-D) 0.54 0.06 0.89 0.15 0.64

Statement of comprehensive income	Q2 2023/24	Q2 2022/23	YTD 2023/24	YTD 2022/23	FY 2022/23
Net profit for the period	144	15	236	37	168
Other comprehensive income: income statement under certain conditions:
Translation adj. in foreign subsidiaries	33	-22	-37	-188	-168
Other comprehensive income after tax	33	-22	-37	-188	-168
Comprehensive income for the period	177	-7	199	-151	0

DKKm DKKm

CASH FLOW STATEMENT

INTERIM REPORT Q2 2023/24

	YTD	YTD	FY
	2023/24	2022/23	2022/23
Net profit	236	37	168
Adjustment for non-cash items:
Income taxes in the Income statement	71	10	42
Depreciation, amortisation and impairment losses	178	154	348
Financial items	13	76	84
Share-based payment	11	0	17
Change in working capital	-82	-199	-21
Change in provisions	-3	0	0
Interest paid	-12	-40	-63
Income tax paid	-27	-37	-57
Cash flow from operating activities	385	1	518
Investments in intangible assets	-91	-121	-255
Investments in tangible assets	-31	-33	-71
Cash flow from investing activities	-122	-154	-326
Free cash flow	263	-153	192
Proceeds from borrowings	0	230	325
Repayment of borrowings	0	-1,140	-1,575
Repayment in respect of lease liability	-31	-33	-63
Exercise of options	0	14	14
Sale of treasury shares	0	23	23
Capital increase	0	1,054	1,054
Cash flow from financing activities	-31	148	-222
Changes in cash and cash equivalents	232	-5	-30
Cash and cash equivalents, beginning of period	157	187	187
Translation adjustment of cash and cash equivalents	-2	0	0
Cash and cash equivalents, end of period	387	182	157

	YTD 2023/24	YTD 2022/23	FY 2022/23
Cash and cash equivalents, end of period, are composed as follows:
Cash at bank and in hand	233	182	157
Short-term deposits	154	0	0
Cash and cash equivalents, end of period	387	182	157

DKKm DKKm

BALANCE SHEET

INTERIM REPORT Q2 2023/24

Assets		31.03.24 31.03.23 30.09.23
Goodwill	1,551	1,545	1,565
Acquired technologies, trademarks and customer relations	613	454	643
Acquired technologies in progress	0	212	0
Completed development projects	940	769	888
Other incl. IT software	71	55	71
Development projects and other assets in progress	407	539	444
Intangible assets	3,582	3,574	3,611
Property, plant and equipment	566	591	584
Right-of-use assets	615	567	571
Deferred tax asset	58	85	85
Total non-current assets	4,821	4,817	4,851
Inventories Trade receivables	920 744	1,086 671	907 766
Other receivables	44	50	44
Income tax receivable	50	45	50
Prepayments	88	74	73
Derivative financial instruments	7	12	11
Cash and cash equivalents	387	182	157
Total current assets	2,240	2,120	2,008
Total assets	7,061	6,937	6,859

Equity and liabilities		31.03.24 31.03.23 30.09.23
Share capital	135	135	135
Other reserves	5,470	5,077	5,258
Equity	5,605	5,212	5,393
Deferred tax	4	8	3
Provisions	9	18	9
Lease liabilities	557	493	512
Borrowings	0	340	0
Non-current liabilities	570	859	524
Provisions	6	4	9
Lease liabilities	73	82	72
Trade payables	376	358	359
Income tax	22	7	10
Other payables	409	415	492
Current liabilities	886	866	942
Total liabilities	1,456	1,725	1,466
Total equity and liabilities	7,061	6,937	6,859

STATEMENT OF CHANGE IN EQUITY

INTERIM REPORT Q2 2023/24

	Share	Reserve foreign currency trans lation	Retained	Proposed
	capital	adj.	earnings	dividend	Total
Equity 1 October 2023	135	211	5,047	0	5,393
Net profit for the period			236		236
Other comprehensive income for the period		-37			-37
Total comprehensive income	0	-37	236	0	199
Transactions with the owners:
Share-based payment			11		11
Tax deduction relating to share-based pay			2		2
Equity 31 March 2024	135	174	5,296	0	5,605

Other reserves are made up of reserve for foreign currency translation adjustment, retained earnings and proposed dividend, totalling DKK 5,470m (31.03.2023: DKK 5,077m).

DKKm		Share capital	Reserve foreign currency trans lation adj.	Retained earnings	Proposed dividend	DKKm Total
	Equity 1 October 2022	129	379	3,753	0	4,261
	Net profit for the period Other comprehensive income for the period		-188	37		37 -188
	Total comprehensive income	0	-188	37	0	-151
	Transactions with the owners: Share-based payment Tax deduction relating to share-based pay Exercise of options Sale of treasury shares Share capital increase1)	6		6 5 14 23 1,048		6 5 14 23 1,054
	Equity 31 March 2023	135	191	4,886	0	5,212

1) On 24 March 2023, Ambu concluded its accelerated bookbuild offering to increase the share capital by a nominal amount of DKK 6m. The total net proceeds raised in Q2 2022/23 was DKK 1,054m.

NOTES TO THE INTERIM REPORT

INTERIM REPORT Q2 2023/24

Note 1 – Basis of preparation of the interim report

The interim report for the period 1 October 2023 to 31 March 2024 is presented in accordance with IAS 34 – Interim Financial Reporting as adopted by the EU and additional Danish disclosure requirements for the interim reporting of listed companies.

The accounting principles applied are consistent with the principles applied in the annual report for 2022/23, except for the extended practise explained below.

Classification of Cash and cash equivalents

Ambu has entered into short-term deposits with a maturity less than three months. These are classified as Cash and cash equivalents.

Note 2 – Segment information

Ambu is a supplier of medtech products for the global market. Except for the sales of the various products, no structural or organisational aspects allow for a division of earnings from individual products, as sales channels, customer types and sales organisations are identical for all important markets. Furthermore, production processes and internal controls and reporting are identical, which means that, with the exception of revenue, everything else is unsegmented. Ambu has thus identified one segment.

Note 3 – Revenue

	Q2 2023/24	Q2 2022/23	YTD 2023/24	YTD 2022/23	FY 2022/23
Endoscopy solutions	807	663	1,555	1,280	2,687
Anaesthesia	287	264	555	537	1,093
Patient Monitoring	273	262	511	504	995
Total revenue by activities	1,367	1,189	2,621	2,321	4,775
North America	684	586	1,315	1,171	2,424
Europe	541	473	1,046	913	1,863
Rest of World	142	130	260	237	488
Total revenue by markets	1,367	1,189	2,621	2,321	4,775

Note 4 – Contingent liabilities

Ambu's ongoing operations and the use of Ambu's products in hospitals and clinics etc. involve the general risk of claims for damages and sanctions against Ambu. The risk is deemed to be customary.

Ambu is involved from time to time in disputes with customers and patients about Ambu's products. Appropriate provisions are made on an ongoing basis, and product liability insurance has been taken out. The management believes that the likely outcomes of these disputes can be covered by the provisions made and recognised in the balance sheet as at 31 March 2024.

Note 5 – Subsequent events

In addition to the matters described in this interim report, the management is not aware of any events subsequent to 31 March 2024 which could be expected to have a significant impact on the group's financial position.

ABOUT AMBU

Since 1937, Ambu has been rethinking solutions, together with healthcare professionals, to save lives and improve patient care. Today, millions of patients and healthcare professionals worldwide depend on the efficiency, safety and performance of our single-use endoscopy, anaesthesia and patient monitoring solutions.

Headquartered near Copenhagen in Denmark, Ambu employs around 4,600 people in Europe, North America, Latin America and Asia Pacific.

For more information, please visit Ambu.com.

CONTACT

Investors Anders Hjort Head of Investor Relations anhj@ambu.com | +45 2892 8881

Media

Tine Bjørn Schmidt Head of Corporate Communications tisc@ambu.com | +45 2264 0697

Ambu A/S Baltorpbakken 13 DK-2750 Ballerup, Denmark Tel.: +45 7225 2000 CVR no.: 63 64 49 19 Ambu.com